I recently saw a couple of ads in ourlocal Los Angeles Paper and I would like your comments, (as I'm still struggling to learn).

Fed and State Tax Free - 4.50% - Cuppertino, Ca.2002, Refinancing Capital Imp. COP - Aaa/AAA rated, AMBAC INSURED:Matures 7/01/24, yield to materiality 4.50% Priced at 100 callable 7/01/09 @$102 - $25,000 minimum. the way I understand it, is even tho it's offered at par, the likelihood of it being called is low, and money would be tied up until 24 - not a good idea

What other information should I be looking at. It was very helpful when you explained the difference between State obligation vs. Revenue.

I then went to CNN Money and looked up Bonds with AAA and maturities up to 2007. All of them were at a premium. I was looking for AAA only, as I want safety first, and I don't want to tied up money too long in this climate. This is a sample of what I found:

questions: What's the different between Yield and LY - they are both the same. Also the fact that they all are at a premium, does that mean when they mature the Yield is even less because they will be at 100 rather than the price purchased, or is that accounted for in the premium price